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50.3.

50.4.

50.5.

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from receipt of the order of payment. Failure of the Onshore
Wind Energy Developer to do so shall cause the OnWESC to
be deemed void.

50.2.4. Posting of Performance Bond. Subject to Section 91, the
OnWESC Applicant shall post the performance bond covering
the first Contract Year in accordance with Section 65 within the
sixty (60) calendar days from receipt of notice. Failure of the
Onshore Wind Energy Developer to do so shall cause the
OnWESC to be deemed void.

50.2.5. Delivery of the Signed Onshore Wind Energy Service
Contract. Within one (1) calendar day from receipt of the proof
of payment of the signing fee within the prescribed period,
WEMG shall, after due validation thereof, upload in the EVOSS
System the signed and notarized copy of the OnWESC and
COR, as applicable.

The Onshore Wind Energy Developer shall personally receive
the original copies of the OnWESC and COR, as applicable,
after submission of proof of posting of the performance bond
within the prescribed period. Simultaneous with the receipt of
the OnWESC, the Onshore Wind Energy Developer shall
surrender to the DOE the COA issued pursuant to this Circular.

Duty to Maintain Records. The WEMG shall maintain a record of all
LOls received, pending OnWESC Applications, and signed OnWESC in
the EVOSS System.

Reopening of the Area. The ITMS shall make the area available to
other applicants only when: a) the ONWESC Applicant failed to qualify
and the period under Section 48.10.2.2 has lapsed; or b) withdraws or
abandons its LOI or ONWESC Application, as the case may be, and only
after due notice is given to the concerned OnWESC Applicant of such
information by the REMB Supervising Assistant Secretary, copy
furnishing the ITMS with the said notice. Such information shall be
posted on the DOE website and previously denied applicants shall be
notified through the EVOSS System. Once an area is declared to be
available, subsequent RE Applications covering the same may be
allowed, and only on a first-come, first-served basis.

Registration of Onshore Wind Energy Developers. The DOE,
through the REMB, shall issue a COR to an Onshore Wind Energy
Developer holding a valid OnWESC for purposes of entitlement to the
incentives under the RE Act, subject to Chapter XI! of this Circular, upon
the issuance of the COCOC. Notwithstanding the foregoing, the
issuance of a COR may be availed of upon the award of the OnWESC,
at the option of the Wind Energy Developer.
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51. Terms of Onshore Wind Energy Service Contract. The development of onshore
wind energy resources shall be covered by an OnWESC following the prescribed
template (Annex “H”).

51.1.

51.4.

The Onshore Wind Energy Developer shall be given a non-extendible
period of five (5) years from the date of execution of the OnWESC to
determine the existence of onshore wind energy resource in Commercial
Quantities and shall be called Pre-Development Stage.

. The Development/(Commercial Stage shall commence immediately upon

the expiration of the Pre-Development Stage and upon the issuance of
the COCOC, and shall continue for the remainder of term of the
OnWESC.

. The OnWESC shall have a term of twenty-five (25) years from the date

of execution, which shail include the Pre-Development Stage and
Development/Commercial Stage but shall exclude the period covered by
the COA.

Not earlier than two (2) years but not later than one (1) year prior to the
expiration of the twenty-five (25)-year period, the OnWESC may be
renewed for another twenty-five (25) years, subject to the terms and
conditions of the OnWESC.

52. Stages of Onshore Wind Energy Service Contract. An OnWESC shall cover
two (2) stages of the onshore wind energy project, namely:

52.1.

52.2.

Pre-Development Stage. It involves the conduct of preliminary
assessment and feasibility study up to Financial Closing and approval of
DOC of the onshore wind energy project, including the identification of
the proposed Production Area; and

Development/Commercial Stage. It involves the development,
construction, and commercial operation of the onshore wind energy
project, and the production and utilization of onshore wind energy
resources.

53. Investments.

53.1.

53.2.

New Investments. Onshore Wind Energy Developers undertaking
discovery, exploration, development and/or utilization of onshore wind
energy resources within the Contract Area using new onshore wind
energy technology distinct from the originally registered operations may
qualify as new projects, subject to setting up of new separate books of
accounts. The Onshore Wind Energy Developer may, upon its
discretion, relinquish the Contract Area and apply for a new OnWESC
over the area of new investment, subject to constitutional term limits.

Additional Investments. Additional investment may cover investment
for improvements, modernization, rehabilitation, or expansion duly
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registered with the DOE, which may or may not result in increased
capacity, subject to the conditions to be determined by the DOE, such
as, but not limited to, the following:

53.2.1. Identification of and investment in sequential phases/stages of
production, or undertaking scheduled modernization or
rehabilitation; and

53.2.2. Improvements such as reduced production/operational costs,
increased production, improved operational efficiency, and
better reliability of the onshore wind energy facilities.

If, by reason of the additional investment, the capacity of the onshore
wind energy project is increased by at least thirty percent (30%) as
validated by REMB, the Onshore Wind Energy Developer shall have the
option to avail of an additional COR indicating the type of additional
investment. Upon the issuance of the additional COR, the applicable
incentives under the RE Act shall be reset.

In cases where the period to avail of duty-free importation has lapsed
and the additional investment involves the importation of RE machinery,
equipment and/or materials, the DOE, upon the request of the Onshore
Wind Energy Developers, may issue an additional COR indicating the
type of additional investment prior to the actual increase of the capacity
based on the following:

53.2.2.1. Full and detailed feasibility study showing that upon installation
of the RE equipment, machinery and/or materials specified
therein, the capacity of the wind power energy will be increased
by at least thirty percent (30%);

53.2.2.2.Binding agreements for the purchase of RE equipment,
machinery and/or materials with the same specifications
mentioned in the feasibility study;

53.2.2.3. Detailed timeline of activities to implement the improvement,
modernization, rehabilitation or expansion; and

53.2.2.4. Subject to Section 91, proof of posting of performance bond as
provided in Section 65.

CHAPTER VIII - OFFSHORE WIND ENERGY RESOURCE

54. Eligibility of Offshore Wind Energy Service Contract Applicant. Any Person
may apply for OSWESC, subject to the relevant provisions in this Chapter.

54.1. The OSWESC Applicant may be a Filipino and/or a foreign citizen, or a
Filipino- and/or foreign-owned corporation or association which is
authorized by its articles or deed of incorporation to engage in the
exploration, development, and utilization of offshore wind energy
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resources: Provided, That in case the OsWESC Applicant is a joint
venture or a consortium, the partners of the joint venture or members of
the consortium shall organize themselves as a corporation under the
Revised Corporation Code or secure the appropriate license from the
SEC, in case the joint venture or consortium was incorporated outside
of the Philippines.

An Applicant which applies for an OsWESC that involves activities
reserved to Filipino citizens or corporations or associations at least sixty
percent (60%) of whose capital is owned by Filipinos shall comply with
the nationality requirements under applicable laws, including the Anti-
Dummy Law on the appointment of officers of the corporation.

55. Modes of Awarding Offshore Wind Energy Service Contract. OsWESC shall
be awarded through (a) an OCSP, or (b) Direct Application.

55.1.

55.2.

55.3.

The OCSP shall be adopted for the selection and award of OsWESC for
PDAs covering offshore wind energy resources for commercial
purposes. This shall be governed by Section 56 and such guidelines as
may be issued by the DOE pursuant to Section 57.

Direct Application shall be available for the selection and award of:

55.2.1. OsWESC covering PDAs, following a failed OCSP pursuant to
the guidelines issued under Section 57; and

55.2.2. OsWESC in an area identified by an OsWESC Applicant and
verified with or confirmed by the ITMS as available for
exploration, development and/or utilization of offshore wind
energy resources.

Offshore Energy Projects for Own-Use and/or for Non-Commercial and
Non-Commercial Purposes shall not require the issuance of OSWESC
but shall comply with the registration requirements provided under
Chapter XI of this Circular.

56. Pre-Determined Areas. Interested parties may apply for OsWESC for PDAs
offered by the DOE during a prescribed period.

56.1.

56.2.

Selection of PDAs. The REMB shall identify and submit a list of PDAs
for OSWESC Applications, with the respective location maps, technical
descriptions, and wind resource data thereof, to the DOE Secretary,
through its Supervising Assistant Secretary and Undersecretary, for
approval.

Launch and Publication. PDAs approved by the DOE Secretary shall
be scheduled for launch and shall be publicly announced by the DOE for
submission of OSWESC Applications.
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56.3. Data Packages and Promotional Activities. The REMB shall arrange
for the availability of data packages for the approved PDAs that can be
purchased by interested parties in support of their applications. The
REMB shail conduct promotional activities to promote the OCSP and the
corresponding data packages so as to ensure maximum participation
and awareness of prospective investors and stakeholders.

57. Procedure for Awarding Offshore Wind Energy Service Contract under the
Open and Competitive Selection Process. The DOE shall issue specific guidelines
for the conduct of, and award of OSWESCs under, OCSP.

If an OCSP is declared a failure with respect to any or all PDAs included therein, all
the affected PDAs shall be opened for Direct Application.

58. Procedure for Awarding Offshore Wind Energy Service Contract under
Direct Application.

58.1. Coverage. Direct Application shall be observed in processing OS WESC
Applications for: (a) offshore wind energy resources located in PDAs
which the DOE shall declare as available under this mode pursuant to
guidelines issued under Section 57, and (b) offshore wind energy
resources in areas other than those included in the PDAs, subject to the
procedures provided herein.

Part 1. Pre-Application Process

58.2. Registration in the EVOSS System. If the interested participant has no
EVOSS System account yet, it shall submit a request for registration in
the EVOSS System with the WEMG. The list of requirements necessary
for registration is detailed in Annex “J”.

58.3. Submission of Letter of Intent. All interested participants shall submit
through the EVOSS System an LOI to develop a certain area (Annex
“K’), in accordance with the mapping requirements (Annex “N”). The LO!
shall be addressed to the REMB Director and shall indicate whether the
interested participant will avail of the COA referred to in 59 and 60.1. If
the interested participant opts to avail of the COA, its LOI shall include a
list of all permits and activities to be procured/conducted during the
validity of the COA: Provided, That the list must cover the minimum set
of permits and activities mentioned in Annex |.1. The submission of the
LO! shall not be considered as a filing of an OSWESC Application and
shall not commence the application process.

58.4. Pre-Application Orientation of Interested Participant. The orientation
is intended to inform the interested participants about the OsWESC pre-
application and mapping requirements and processes.

Any interested participant may request for an orientation by signifying
such intent in its LOI; otherwise, it shall be presumed that the interested
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participant is aware of the OsWESC pre-application and mapping
requirements and processes.

Part 2. Area Verification and Technical Guidelines

58.5. Configuration of Area of Interest. Tne AOI for the OsWESC
Application shall either be polygonal or in block following the Blocking
System or a combination of both. ITMS shall check the completeness of

the ma

pping requirements within three (3) working days.

58.6. Area Verification. Within eighteen (18) calendar days from receipt of
the LOI with complete documents, ITMS shall complete the area
verification and determine whether the AO}! is:

58.6.1.

58.6.2.

58.6.3.

58.6.4.

Covered by an existing PDA under the OCSP, WESC,
OsWESC or OnWESC, OsWESC or OnWESC pending
application, or other energy resource assessment activities as
submitted by the concerned DOE unit and verified by ITMS;

Within or overlaps with the area of an existing energy service or
operating contract such as PSC, COC, SSCMP, or RESC other
than OSWESC or OnWESC;

Within or overlaps with the area of an existing energy service or
operating contract application such as PSC, COC, SSCMP or
RESC, other than OSWESC or OnWESC Application;

Within the protected and environmentally critical areas under
the ENIPAS, i.e., within or outside the strict protection zones,
ancestral domains with Certificate of Ancestral Domain Title or
Claim, areas with tenurial instruments from other government
agencies, areas prohibited, reserved, or used for national
defense, navigation, irrigation, and other development projects,
zones identified under the MSP of the DOE, safety and
exclusion zones under Proclamation No. 72, series of 2001
titled, “Establishing Safety and Exclusion Zones for Offshore
Natural Gas Wells, Flowlines, Platform, Pipelines, Loading
Buoy and Other Related Facilities for the Malampaya Deep
Water Gas-to-Power Project over Certain Waters and
Submerged Lands Adjacent to Batangas, Mindoro and
Palawan”, and other areas covered by significant geospatial
data that will be identified as necessary in the evaluation of the
OsWESC Application based on available data on file with ITMS
and the NAMRIA’s Philippine Geoportal Project website.

Pursuant to the mandate of the DOE to supervise and control all
government activities relative to energy project under the EPIRA,
concerned government agencies and entities shall provide the
DOE the list of abovementioned areas with technical description
and corresponding shapefiles;
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58.7.

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58.6.5. Covered by the COA of other energy resource;

58.6.6. Covered by the COA of the same energy resource; and/or

58.6.7. Subject to Section 58.9.4, open for OSWESC Applications:
58.6.7.1. Covered by AOI of the same/other energy resource; or
58.6.7.2. Not covered by AOI of the same/other energy resource.

Area Verification Results. ITMS shall provide WEMG with the results
of area verification through the EVOSS System. Within five (5) calendar
days upon the receipt of the verification results, WEMG, through the
REMB Assistant Director, shall endorse the final verification results and
upload the letter containing the results of area verification in the EVOSS
System.

The REMB Assistant Director shall issue a Notice to Apply if the AOI falls
under Section 58.6.7. If the AOI falls under Sections 58.6.1 to 58.6.5, the
OsWESC Applicant shall be issued a Notice to Apply only after
complying with the succeeding paragraph.

lf the OsWESC Application cannot proceed based on the final
verification results, the interested participant may either (a) reconfigure
the AOI; (b) file a request to allow the development of multiple resources
in the area; or (c) comply with Section 58.7.3, as applicable.

58.7.1. Reconfigured Area of Interest. Within ten (10) calendar days
from uploading of the final verification results or from receipt of
notice that multiple resource development in the overlapping
area is not feasible under Section 58.7.2, the interested
participant and WEMG may conduct an assessment if the AOI
may be reconfigured without material adverse effect on the
feasibility of the proposed offshore wind energy project. The
interested participant may reconfigure its AOI to cover only
such portion as may allow the OsWESC Application to
proceed. After confirmation by ITMS that no portion of the
reconfigured AOI falls under Sections 58.6.1 or 58.6.6 (for
same energy resource), and Sections 58.6.2, 58.6.3, 58.6.5
(for other energy resource), or Section 58.7.3.1 (for strict
protection zones, exclusion and no-build zones), or if authority
and consent is granted under Section 9.7.3.5, if applicable,
WEMG shall upload in the EVOSS System a Notice to Apply to
the interested participant for the filing of the OsWESC
Application.

58.7.2. Multiple Resources in an Area. If the AO! of the interested
participant overlaps with the area of an existing energy service
or operating contract or an application therefor, or of the COA
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of another RE Developer not affiliated to the interested
participant as provided under Sections 58.6.2, 58.6.3 and
58.6.5, the interested participant may still pursue the OSWESC
Application, subject to the following provisions:

58.7.2.1. The interested participant shall:

58.7.2.2.

58.7.2.3.

58.7.2.4.

58.7.2.1.1.Explain in writing why the proposed offshore
wind energy project will not be feasible
without the overlapping area, with justification
on the technical viability of the project; and

58.7.2.1.2.Submit a notarized acknowledgment and
undertaking that the interested participant
recognizes and shall continue to recognize
the prior rights of the existing developers of
other energy resources within the overlapping
area; that the design of the proposed offshore
wind energy project will ensure safe and
optimal development of offshore wind energy
and other energy resources in the
overlapping area; and that all costs needed
therefor shall be borne by the interested
participant.

WEMG shall inform the existing applicant or energy
contractor/developer of the intent to develop the
offshore wind energy resources within the overlapping
area. Copies of the interested participant's LOI, the
written explanation, and their supporting documents
shall be furnished to the applicant or
contractor/developer.

If no objection is received from the existing applicant or
energy contractor/developer within the prescribed
period, WEMG shall upload in the EVOSS System the
Notice to Apply to the interested participant for the filing
of the OSWESC Application

If the existing applicant or energy contractor/developer
objects to the proposal, the said applicant or applicant
or energy contractor/developer shall notify WEMG
thereof and provide a copy to the interested participant
within ten (10) calendar days from receipt of notice,
citing the impracticability of multiple resource
development as to additional costs, safety, substantial
decrease in the utilization of the energy resource, and
other relevant factors. Copies of the written objection
shall be furnished to the DOE Division processing the
application or administering the energy project. A
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58.7.3.

58.7.2.5.

58.7.2.6.

58.7.2.7.

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statement that multiple resource development in the
overlapping area is impracticable without technical
basis shall not be considered as an objection.

Within five (5) calendar days from receipt of an
objection, WEMG and the concerned DOE Division
shall jointly determine whether exploration of offshore
wind energy resources within the overlapping area may
be conducted without material adverse effect on the
activities of the existing energy contractor/developer.
Such determination shall consider the interested
participant’s proposal, the objection and the technical
bases cited therein. The evaluation shall be endorsed
to the REMB Director.

Upon receipt of the endorsement, the REMB Director
may, if he concurs that the offshore wind energy project
will not cause material injury, issue a recommendation
to the DOE Secretary based on the feasibility of
multiple resource development in the overlapping area,
taking into account the most beneficial use of the
resources.

The DOE Secretary shall decide whether to allow
multiple resource development in the overlapping area.
If the DOE Secretary allows the same, the REMB
Assistant Director shall issue a Notice to Apply to the
interested participant.

Other Areas. If the AO! of the interested participant overlaps
with the area as provided under Section 58.6.4, the interested
participant may still pursue the OsWESC Application if there
is no material adverse effect on the feasibility of the proposed
offshore wind energy project after applying the provisions
below:

58.7.3.1.

58.7.3.2.

58.7.3.3.

If the AO! overlaps with areas within strict protection
zones under the ENIPAS and exclusion and no build
zones under the MSP of DOE, the interested participant
shall submit a revised AOI which is net of the said areas.

If the AOI overlaps with areas outside strict protection
zones under the ENIPAS, the REMB Assistant Director
shail issue a Notice to Apply for the said AOI: Provided,
That the Contract Area may be reduced subject to the
ENIPAS and its IRR.

lf the AOI overlaps with ancestral domains with
Certificate of Ancestral Domain Title or Claim, the REMB
Assistant Director shall issue a Notice to Apply for the
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said AOI: Provided, That the Contract Area may be
reduced subject to the IPRA and its IRR.

58.7.3.4.If the AOI overlaps with areas with tenurial instruments
from other government agencies, the REMB Assistant
Director shall issue a Notice to Apply for the said AOI:
Provided, That the Contract Area may be reduced
subject to the relevant rules and regulations of the
concerned government agency.

58.7.3.5.If the AOI overlaps with areas prohibited, reserved, or
used for national defense, navigation, irrigation, and
other development projects, and other areas, the REMB
Assistant Director shall issue a Notice to Apply for the
said AOI: Provided, that the Contract Area may be
reduced subject to the relevant rules and regulations of
the concerned government agency.

58.7.3.6. If the AOI is within the safety and exclusion zones for
offshore natural gas wells, flowlines, platform, pipelines,
loading buoy and related facilities for the Malampaya
Deep Water Gas-To-Power Project over certain waters
and submerged lands adjacent to Batangas, Mindoro
and Palawan, the interested participants should secure
a prior authorization from the DOE and the DND, and
prior consent from the SC No. 38 Service Contractor
pursuant to Section 1 of Proclamation No. 72, Series of
2001.

Part 3. Filing and Evaluation of Offshore Wind Energy Service Contract
Applications

58.8.

58.9.

Orientation of OSWESC Applicant. The orientation is intended to
inform OsWESC Applicant about the OsWESC application
requirements, and to guide them through the process for evaluation
thereof, awarding of OSWESC and the registration of an onshore wind
energy project.

The Notice to Apply uploaded in the EVOSS System shall include the
schedule of the mandatory orientation for OsWESC Applicants,
facilitated by representatives from the LS, WEMG, and FS. The
OsWESC Applicant shall ensure the attendance of legal, technical, and
financial staff during the orientation.

Receipt of Offshore Wind Energy Service Contract Applications.
After the Notice to Apply is uploaded in the EVOSS System, the
interested participant may file its OsWESC Application by complying with
the procedures and requirements, as follows:
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58.9.1.

58.9.2.

58.9.3.

58.9.4.

58.9.5.

58.9.6.

58.9.7.

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The OsWESC Applicant shall submit through the EVOSS
System the complete set of documentary requirements based
on the Checklist of Requirements (Annex “M’).

WEMG shall check the completeness and consistency of the
submission and ITMS shall validate the area applied for the
offshore wind energy project within three (3) working days.

If the submission is complete and the AOI is still free for
development, WEMG shall upload a copy of the order of
payment for the application and processing fees. The EVOSS
System shall notify the OSWESC Applicant through a system-
generated email to pay the application and processing fees
within three (3) working days. Failure to do so will result in the
abandonment of the application. Within one (1) working day
from uploading, DOE shall validate the proof of payment.

The AOI is not reserved for the OsWESC Applicant until the
submission of complete application documents and proof of
payment of application and processing fees.

The EVOSS System shall notify LS, FS and ITMS of the
complete submission.

In case the AOI is no longer free for development, the
OsWESC Applicant shall be notified through the EVOSS
System and the OsWESC Application shall be denied
accordingly.

To ensure the orderly processing of OSWESC Applications, the
EVOSS System shall be modified such that ITMS must input
its confirmation therein that the AOI is available before an
OsWESC Applicant can upload the documentary
requirements. Pending such modification, WEMG shall
revalidate with ITMS whether the AOI is open for application
before issuing the order for the payment of application and
processing fees mentioned in Section 58.9.3.

58.10. Evaluation of Offshore Wind Energy Service Contract Applications.

58.10.1.After the payment of the processing fee, WEMG, LS, and FS

shall conduct the simultaneous technical, legal, and financial
evaluations within five (5) calendar days from uploading of the
proof of payment of application and processing fees in the
EVOSS System.

58.10.2. WEMG shall consolidate all the evaluation results and proceed

with the processing:
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58.10.2.1. If the OSWESC Application passes the evaluations,

58.10.2.2.

WEMG shall, within two (2) calendar days from its
receipt of the evaluation documents, prepare
REMB’s memorandum for the DOE Secretary
endorsing the award of OsWESC Application; the
draft COA, as applicable; and the draft OsWESC.
The endorsement must include the original copy of
the results of area verification and the legal,
technical and financial evaluations with all their
attachments, and the project area map and its
technical descriptions. Upon concurrence of ITMS,
FS, REMB and LS on the endorsement, the DOE
Secretary shall act on the OsWESC Application in
accordance with Section 60.

If the OSWESC Application does not pass the legal,
technical, and/or financial evaluations, WEMG shall
notify the OSWESC Applicant through the EVOSS
System to rectify the submission within ten (10)
working days. WEMG shall check the completeness
of the submission within three (3) working days.
Such period for rectification and checking of
completeness of the rectification documents shall
be deemed outside of the EVOSS timeframe.

58.10.2.2.1. Failure of the OsWESC Applicant to submit

supplementary documents within — the
prescribed period shall be deemed an
abandonment of the OsWESC Application.
WEMG shall notify the OsWESC Applicant,
LS, FS, and ITMS of the disqualification
through the EVOSS System.

58.10.2.2.2. lf the OsWESC Applicant submits

supplementary documents within the
prescribed period above and WEMG
determines that the submission is
incomplete, the OsWESC Applicant shall
have the remainder of the rectification
period, if any, to submit the lacking
documents. Upon receipt of the said
documents, reevaluation shall proceed in
accordance with the next succeeding
subparagraph.

58.10.2.2.3. WEMG, LS and FS shall be notified by the

EVOSS System of the submission. WEMG,
FS and LS shall finish the simultaneous
technical, legal, and financial evaluations
within three (3) calendar days.
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58.10.3.

58.10.4.

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58.10.2.2.4. Should the OSWESC Application still fail to

pass any of the subsequent legal, technical,
or financial evaluations, the REMB Assistant
Director shall recommend the
disqualification of the OSWESC Application
to the Supervising Assistant Secretary who
shall then issue a formal notice to the
OsWESC Applicant stating the basis of the
disqualification. WEMG shall notify the
OsWESC Applicant, LS, FS, and ITMS of
the disqualification through the EVOSS
_System. After five (5) calendar days from
receipt of the OsWESC Applicant of the
letter of disqualification, the REMB shall
prepare a memorandum to the ITMS to
immediately re-open the area for RE
Applications by posting such information on
the DOE website and send notifications to
concerned interested participants or RE
Applicants through electronic mail pending
the necessary modifications to the EVOSS
System.

The OsWESC Applicant shall submit all supplemental
documents through the EVOSS System. Documents submitted
outside the EVOSS System and those submitted through the
EVOSS System but beyond the prescribed period shall not be
accepted or evaluated. Further, the OsWESC Applicant shall
have a one-time opportunity to address the deficiencies found
after the completeness check mentioned in Section 58.10.2.2,
which shall be made within the ten (10) working day period. The
remaining days, if there are any, shall be forfeited. Therefore,
the OsWESC Applicant must ensure that all its documents are
final and complete before submitting the same through the
EVOSS system.

No RR of any of the legal, technical, financial evaluation or the
disqualification shall be entertained, except when the OsWESC
Applicant failed to submit the required documents within the
prescribed timelines due to a fault in the EVOSS System, as
confirmed by the IPO. In such circumstances, the OsWESC
Applicant shall file the RR with REMB within three (3) working
days from uploading of the Notice of Disqualification.

58.10.4.1. Upon receipt of the RR, WEMG shall request the
IPO to confirm the occurrence of the technical
problem. If so confirmed and the same prevented
the timely submission, WEMG, FS and/or LS shall
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58.11.

58.12.

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evaluate the OSWESC Application considering the
additional submission.

58.10.4.2. If the OsWESC Application passes the evaluation,
REMB shall grant the RR. Thereafter, WEMG shall
proceed in accordance with Section 58.10.2.1.

If the Offshore Wind Energy Developer waived the COA during the pre-
application process, WEMG shall proceed with the application in
accordance with Section 60.2.

Re-application for OSWESC. After ITMS re-opens the area for RE
Applications pursuant to Section 58.10.2.2.3, the OsWESC Applicant
may re-apply for the same AOI by complying with Section 58.9.1.

During the checking of the submission for completeness and
consistency under Section 58.9.2 and prior to giving notice of any
deficiency, WEMG shall stamp the Notice to Apply “Revalidated’” with the
appropriate date if the area is still open for OSWESC Applications.

If another OSWESC Applicant is issued a Notice to Apply over the same
AOI or a portion thereof and uploads the documentary requirements
through EVOSS System, the completeness check referred to above and
the validation of the area with the ITMS shall be on a first-come, first-
served basis. WEMG shall issue an order of payment for the application
and processing fees to the OsWESC Applicant which first files the
complete documentary requirements based on the EVOSS System logs.

59. Terms of Certificate of Authority. The awardee of an OsWESC shall have
exclusive authority to procure permits or certifications and tenurial instruments needed
for the exploration, development and utilization of the offshore wind energy resources
within an area specified in the OsWESC Application and conduct reconnaissance and
other activities needed for pre-feasibility studies upon the issuance of COA by the

DOE.

59.1.

59.2.

The COA shall be valid for a period not exceeding three (3) years. During
its validity, the COA shall serve as the DOE’s exclusive endorsement for
the Offshore Wind Energy Developer to conduct reconnaissance and
other pre-feasibility activities and secure the necessary permits or
certifications and tenurial instruments from government agencies, LGUs,
entities or instrumentalities having jurisdiction over any aspect of the
offshore wind energy operations. The denomination of each permit or
certification or tenurial instrument to be procured as well as the
reconnaissance and other activities to be conducted for the offshore
wind energy project shall be listed in the COA.

The COA shall reflect the metes and bounds of the area as proposed in
the OsWESC Application over which reconnaissance and other pre-
feasibility activities may be conducted and permits and tenurial
instruments may be secured by the Offshore Wind Energy Developer for
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59.3.

59.4.

59.5.

59.6.

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the project. For this purpose, a copy of the technical description of the
area to be covered by the OSWESC shall form part of the COA.

Within thirty (30) calendar days from the issuance of the COA under
Section 60.1, the Offshore Wind Energy Developer shall submit a fixed
timeline for the procurement of permits and conduct of activities in Gantt
chart form, with the minimum work commitment under Annex 1.1.

The above timeline shall not be revised.

Not later than thirty (30) calendar days after the end of each year of the
COA, the Offshore Wind Energy Developer shail submit an annual report
on the permits, certifications or tenurial instruments procured and/or
reconnaissance and other activities needed for pre-feasibility studies
conducted. The annual report shall follow the format prescribed in the
COA: Provided, That during the last year of COA validity, the Offshore
Wind Energy Developer shall submit a report covering the first quarter
of such year not later thirty (30) calendar days after the last day of the
period covered: Provided, however, That if the Offshore Wind Energy
Developer opts to shorten the period of COA validity and the Offshore
Wind Energy Developer gives notice to execute the OsWESC before the
reportorial obligation herein arises, the report and corresponding
evaluation shall be dispensed with.

The DOE shall evaluate the annual accomplishments of the Offshore
Wind Energy Developer based on the fixed timeline above-mentioned:

59.5.1. REMB shall conduct an initial evaluation within ten (10) working
days from receipt of the report of the Offshore Wind Energy
Developer, or from the lapse of the period given under Section
59.3.

59.5.2. Within ten (10) working days from notice thereof, the Offshore
Wind Energy Developer may submit additional documents
refuting REMB’s findings and/or rectifying any deficiency in the
annual report or its supporting documents.

59.5.3. In every case, REMB shall complete the evaluation within the
prescribed period: Provided, That the period for rectification
shall not be counted against REMB’s period for evaluation.

After due evaluation, the DOE may withdraw the COA if the Offshore
Wind Energy Developer is unable to show, through proper
documentation, reasonable efforts to undertake the activities. If the
DOE, through REMB, finds that the COA should be withdrawn, it shall
give the Offshore Wind Energy Developer written notice within fifteen
(15) working days that it has forfeited the benefit of the COA and shall
direct the Offshore Wind Energy Developer to pre-sign the OsWESC in
accordance with Section 60.2.
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59.7.

59.8.

59.9.

59.10.

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The decision of the DOE to withdraw the COA shall be final and non-
appealable.

The validity of the COA shall not be extendible. Any reconnaissance
activity and other pre-feasibility studies that is not conducted and/or
permit or certification or tenurial instrument that remains unissued upon
the lapse of the COA, despite the due diligence of the Offshore Wind
Energy Developer, shall be procured and the necessary activities
therefor conducted, as part of the Pre-Development Stage.

The Offshore Wind Energy Developer shall have the option to waive,
shorten or utilize maximum period of validity of the COA.

59.9.1. If the Offshore Wind Energy Developer opts to shorten the
period of validity, it shall give written notice to the DOE with a
request to execute the OsWESC, a proposed Work Program
and a terminal report on the permits, certifications or tenurial
instruments procured and/or reconnaissance and other
activities needed for pre-feasibility studies conducted.

59.9.2. If the Offshore Wind Energy Developer opts to utilize the full
term, it shall give written notice to the DOE with a request to
execute the OsWESC, a proposed Work Program and the
terminal report mentioned in Section 59.9.1 not earlier than six
(6) months but not later than three (3) months prior to the
expiration of the validity of the COA.

59.9.3. Failure of the Offshore Wind Energy Developer to give written
notice to the DOE within the period mentioned in the preceding
paragraph may be deemed an abandonment of the OsWESC
Application and disqualified following the procedure set forth in
Section 58.10.2.2.3.

Within three (3) calendar days from notice, WEMG shall prepare REMB’s
memorandum for the DOE Secretary endorsing the execution of the
OsWESC in accordance with Section 60.2.

60. Award of Offshore Wind Energy Service Contracts and Registration of
Offshore Wind Energy Developers.

60.1.

60.2.

Issuance of Certificate of Authority. After the approval of an OSWESC
Application and before the execution of an OsWESC, the DOE shall
issue a COA: Provided, That the COA may be waived in accordance with
Section 59.9.

Signing of the Offshore Wind Energy Service Contract. The following
procedure shall govern the awarding of OsWESC:
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60.2.1. Notification of Award. The DOE shall notify the selected

60.2.2.

(under the OCSP) or qualified (under Direct Application)
OsWESC Applicant of the award of the OsWESC.

Signing of the Offshore Wind Energy Service Contract. The
signing of the OsWESC shall be divided into two stages,
namely: a) pre-signing by the OsWESC Applicant; and b)
signing of the DOE Secretary.

60.2.2.1. The REMB Supervising Assistant Secretary shall review

the recommendation and endorse the same to the
REMB Supervising Undersecretary through LS within
two (2) calendar days from receipt thereof. LS shall act
on the endorsement within two (2) calendar days from
receipt of the documents. The Undersecretary shall act
on the endorsement within two (2) calendar days from
receipt of the documents. Within one (1) calendar day
from the concurrence of the Undersecretary with the
REMB’s recommendation, the REMB Director shall
require the OsWESC Applicant to pre-sign the original
copies of the OsWESC following the prescribed
template. The OsWESC Applicant is then required to
pre-sign the OsWESC within thirty (30) days upon
receipt of the notice. Failure to comply within this
timeframe shall result in the OSWESC Application being
deemed abandoned. Notifications will be sent through
EVOSS System at ten (10)-day intervals within this thirty
(30)-day period to the OSWESC Applicant.

60.2.2.2.The OsWESC Applicant shall submit the pre-signed

OsWESC to WEMG. Within one (1) working day, the
WEMG shall check the completeness of the pre-signed
OSWESC and, if the same is in order, shall forward the
pre-signed OsWESC, along with the endorsement and
all its attachments to the Office of the DOE Secretary
one (1) calendar day thereafter. Incomplete pre-signed
OsWESC shall be returned to the OsWESC Applicant
for rectification.

60.2.2.3. The Office of the DOE Secretary shall receive the pre-

signed OsWESC and all its attachments, and the DOE
Secretary shall act on the documents within seven (7)
calendar days from receipt thereof.

60.2.3. Payment of Signing Fee. The WEMG, through the EVOSS

System, shall issue the order of payment within one (1) calendar

The OsWESC Applicant shall pay the signing fee and upload
the proof of payment thereof within fifteen (15) calendar days
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60.3.

60.4.

60.5.

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from receipt of the order of payment. Failure of the Offshore
Wind Energy Developer to do so shall cause the OSWESC to
be deemed void.

60.2.4. Posting of Performance Bond. Subject to Section 91, the
OsWESC Applicant shall post the performance bond covering
the first Contract Year in accordance with Section 65 within the
sixty (60) calendar days from receipt of notice. Failure of the
Offshore Wind Energy Developer to do so shall cause the
OsWESC to be deemed void.

60.2.5. Delivery of the Signed Offshore Wind Energy Service
Contract. Within one (1) calendar day from receipt of the proof
of payment of the signing fee within the prescribed period,
WEMG shall, after due validation thereof, upload in the EVOSS
System the signed and notarized copy of the OsWESC and
COR, as applicable.

The Offshore Wind Energy Developer shall personally receive
the original copies of the OsWESC and COR, as applicable,
after submission of proof of posting of the performance bond
within the prescribed period. Simultaneous with the receipt of
the OsWESC, the Offshore Wind Energy Developer shall
surrender to the DOE the COA issued pursuant to this Circular.

Duty to Maintain Records. The WEMG shall maintain a record of all
LOls received, pending OSWESC Applications, and signed OSWESC in
the EVOSS System.

Reopening of the Area of Interest. The ITMS shall make the area
available to other applicants only when: a) the OSWESC Applicant failed
to qualify and the period under Section 58.10.2.2 has lapsed; or b)
withdraws or abandons its LO! or OSWESC Application, as the case may
be, and only after due notice is given to the concerned OsWESC
Applicant of such information by the REMB Supervising Assistant
Secretary, copy furnishing the ITMS with the said notice. Such
information shall be posted on the DOE website and previously denied
applicants shall be notified through the EVOSS System. Once an area
is declared to be available, subsequent RE Applications covering the
same may be allowed, and only on a first-come, first-served basis.

Registration of Offshore Wind Energy Developers. The DOE,
through the REMB, shall issue a COR to an Offshore Wind Energy
Developer holding a valid OSWESC for purposes of entitlement to the
incentives under the RE Act, subject to Chapter XII of this Circular, upon
the issuance of the COCOC. Notwithstanding the foregoing, the
issuance of a COR may be availed of upon the award of the OsWESC,
at the option of the Offshore Wind Energy Developer.
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61. Types of Offshore Wind Energy Projects. Offshore wind energy projects shall
include, but not be limited to:

61.1.

61.2.

Fixed-Bottom Platforms which are attached to the seabed by piles or
gravity bases installed in shallow waters; and

Floating Platforms which are anchored to the seabed by mooring lines
or cables and deployed in deeper waters.

62. Terms of Offshore Wind Energy Service Contract. The development of offshore
wind energy resources shall be covered by an OsWESC following the prescribed
template (Annex “I”).

62.1.

62.2.

62.3.

62.4.

62.5.

The Offshore Wind Energy Developer shall be given a period of five (5)
years from the date of execution of the OSWESC, extendible up to two
(2) years, to determine the existence of offshore wind energy resources
in Commercial Quantities and shall be called Pre-Development Stage.

The Offshore Wind Energy Developer may file a request to extend the
term of the Pre-Development Stage for justifiable reasons not earlier
than six (6) months but not later than three (3) months prior to its
expiration, which shall be decided by the REMB Supervising
Undersecretary.

The Development/Commercial Stage shall commence immediately upon
the expiration of the Pre-Development Stage and the issuance of the
COCOC, and shall continue for the remainder of term of the OsWESC.

The OsWESC shall have a term of twenty-five (25) years from the date
of execution, which shall include the Pre-Development Stage and
Development/Commercial Stage but shall exclude the period covered by
the COA.

Not earlier than two (2) years but not later than one (1) year prior to the
expiration of the twenty-five (25)-year period, the OsWESC may be
renewed for another twenty-five (25) years, subject to the terms and
conditions of the OsWESC.

63. Stages of Offshore Wind Energy Service Contract. An OsWESC shall cover
two (2) stages of the offshore wind energy project, namely:

63.1.

63.2.

Pre-Development Stage. It involves the conduct of preliminary
assessment and feasibility study up to Financial Closing and approval of
DOC of the offshore wind energy project, including the identification of
the proposed Production Area; and

Development/Commercial Stage. It involves the development,
construction, and commercial operation of the offshore wind energy
project, and the production and utilization of offshore wind energy
resources.
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64. Investments.

64.1.

64.2.

New Investments. Offshore Wind Energy Developers undertaking
discovery, exploration, development and/or utilization of offshore wind
energy resources within the Contract Area using new offshore wind
energy technology distinct from the originally registered operations may
qualify as new projects, subject to setting up of new separate books of
accounts. The Offshore Wind Energy Developer may, upon its
discretion, relinquish the Contract Area and apply for a new OSWESC
over the area of new investment, subject to constitutional term limits.

Additional Investments. Additional investment may cover investment
for improvements, modernization, rehabilitation, or expansion duly
registered with the DOE, which may or may not result in increased
capacity, subject to the conditions to be determined by the DOE, such
as, but not limited to, the following:

64.2.1. Identification of and investment in sequential phases/stages of
production, or undertaking scheduled modernization or
rehabilitation; and

64.2.2. Improvements such as reduced production/operational costs,
increased production, improved operational efficiency, and
better reliability of the offshore wind energy facilities.

If, by reason of the additional investment, the capacity of the offshore
wind energy project will be increased by at least thirty percent (30%) as
validated by REMB, the Offshore Wind Energy Developer shall have the
option to avail of an additional COR indicating the type of additional
investment. Upon the issuance of the additional COR, the applicable
incentives under the RE Act shall be reset.

In cases where the period to avail of duty-free importation has lapsed
and the additional investment involves the importation of RE machinery,
equipment and/or materials, the DOE, upon the request of the Offshore
Wind Energy Developers, may issue an additional COR indicating the
type of additional investment prior to the actual increase of the capacity
based on the following:

64.2.2.1. Full and detailed feasibility study showing that upon installation
of the RE equipment, machinery and/or materials specified
therein, the capacity of the wind energy project will be
increased by at least thirty percent (30%);

64.2.2.2.Binding agreements for the purchase of RE equipment,
machinery and/or materials with the same specifications
mentioned in the feasibility study;

64.2.2.3. Detailed timeline of activities to implement the improvement,
modernization, rehabilitation or expansion; and